iBill Parent Becomes Motivated Seller After Hurricane of Default Judgments

DEERFIELD BEACH, Fla. — Deep in debt and owing millions to adult webmasters through default judgments, the parent company of iBill is attempting perhaps a last-ditch effort to sell its processing business along with its customer database.

Interactive Brand Development, which also owns significant investments in Penthouse Media Group and XTV-parent ITVN, said in a filing Thursday with the Securities and Exchange Commission that it is shopping around its iBill brand and intends to get out of the adult entertainment business.

For the last year, Interactive Brand has attempted to cut numerous deals to breathe life into iBill, particularly with an outsource agreement with Etelegate. But that deal later soured and iBill’s operations were discontinued.

Three years ago iBill was one of the top third-party processors along with CCBill and Paycom. But its current woes can be pinpointed at problems when it was notified by First Data Merchant Services that it was dropping iBill from its merchant account.

Subsequently, the company attempted to secure another merchant account holder and, according to some, failed to tell its clients, mostly online adult companies.

So far, the company said it has negotiated $9.7 million in 627 settlements with adult webmasters, with current pending claims at $450,000.

But some of those settlements haven’t yet been worked out.

“The company has failed to comply with the settlement terms of several of the settlement agreements due to its lack of working capital and has failed to provide answers to certain claims filed by webmasters,” Interactive Brand said in a statement. “The failure to provide answers has resulted in default judgments and the failure to comply with settlement agreements resulted in concessions of judgments.”

As of February, 116 lawsuits were pending against iBill’s parent company, principally within Broward County, where it is located. The company revealed those suits filed by adult webmasters could amount to $53 million.

So far, the company has been ordered to pay $8.9 million in default judgments to adult webmasters.

As of March, the company said it had a working capital deficit of $51.5 million but in the last six months it had no income.

Meanwhile, the company also revealed Thursday that its long-time senior executive, Gary Spaniak Jr., resigned last month. Spaniak had been president of the Deerfield Beach, Fla.-based company.

Calls to Interactive Brand CEO Steve Markley to elaborate on the latest attempts to resuscitate the company and webmaster lawsuits and judgments went unreturned to XBIZ at post time.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

American Arrested in Indonesia for Producing, Distributing Porn

An American man is being held for allegedly producing and distributing pornographic content in Indonesia via social media, according to Indonesian national news agency Antara and other sources.

Creator of Hentaied, Parasited Launches New Site 'Vampired'

Romero Mr. Alien, the creator of Parasited and Hentaied, has launched Vampired.com as both a stand-alone paysite and part of the Hentaied.Pro streaming platform.

Australian eSafety Commissioner Demands Stricter Child Protection Codes

Australia’s online safety regulator, eSafety, is once again reviewing a “final” draft of industry codes to protect children from pornography and other age-inappropriate content, after eSafety Commissioner Julie Inman Grant rejected the previously announced “final” codes as insufficiently stringent.

Nerdgasm: A Look at the Naughty Side of Pop Culture Geekdom

From “Call of Duty” to cosplay, from tabletop dice rolls to dungeon-inspired dirty talk, the worlds of geek fandom and fantasy are no longer confined to the basement. They’ve kicked down the door, shed the “Firefly” tee and gone full frontal.

Kyrgyzstan Parliament Moves to Outlaw Internet Pornography

A parliamentary committee of the Supreme Council of Kyrgyzstan on Tuesday approved a measure to outlaw online adult content in the country.

Sweden Bans Purchase of 'Remote' Sexual Services

The Riksdag, Sweden’s parliament, has approved a proposal to criminalize purchasing sexual services performed remotely by streamers and custom content creators.

Asa Akira to Deliver XBIZ Talk at Miami Conference

XBIZ is pleased to announce that decorated performer, Pornhub brand ambassador, and author Asa Akira is set to deliver an exclusive talk at XBIZ Miami.

JustFor.fans Launches 'Fentanyl Test Strip' Initiative

JustFor.fans (JFF) has launched a test strip initiative to combat the nationwide fentanyl crisis.

2025 XBIZ Miami Speaker Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ Miami, the latest edition of the adult industry’s premier summer conference, set to take place May 19-22 at the Nautilus Sonesta Miami Beach hotel in South Beach.

AV Bulletin: Arizona's About-Face, What New Laws Mean for Adult

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the United States. In the meantime, state legislatures continue to weigh and pass AV bills, the U.K. and the EU are moving ahead with their own AV mandates and strategies, and legal challenges continue to play out in U.S. courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Show More